U.S. Oil & Gas Electrification Market Size

The U.S. oil & gas electrification market size in 2024 was valued at USD 106 million and is estimated to grow at a CAGR of 6% from 2025 to 2034. Ongoing technological advancements in energy production and the paradigm shift away from traditional energy generation sources, is driving the industry growth. Government policies focused on reducing fossil fuel dependence, together with the development of efficient and cost-effective power systems, will propel the business dynamics.

Government policies aimed toward energy security and infrastructure modernization, along with rising need to upgrade aging infrastructure and increased investments in development projects, are driving the industry growth. For instance, in December 2024, Energy Transfer LP's December 2024 announcement revealed plans for the Hugh Brinson pipeline, designed to move natural gas from the Permian Basin to Dallas/Fort Worth infrastructure. The 1.5 billion cubic feet per day capacity project aligns with U.S. emissions regulations driving industry electrification.

U.S. Oil & Gas Electrification Market Trends

U.S. oil & gas electrification industry is set to grow owing to innovations in power generation technologies and a transition from conventional energy sources. Government authorities are implementing policies to decrease reliance on fossil fuels, while simultaneously promoting the advancement of efficient and economical power generation systems further shaping the business dynamics. Favorable regulatory frameworks that encourage the adoption of modern energy systems along with electrification programs will augment the industry landscape.

Increasing environmental concerns, development of new technologies and sustainable solutions continues to transform power generation methods, making them more efficient and environmentally friendly which will positively influence the industry growth. For instance, the U.S. Department of the Interior has given approval for the Maryland Offshore Wind Project, representing the tenth commercial offshore wind venture in the country. With its location 8.7 nautical miles from Maryland and 9 nautical miles from Delaware's Sussex County, this renewable energy initiative aims to produce 2 gigawatts of power. The project will serve 718,000 households across the Delmarva Peninsula and unfolds in three stages, featuring 114 wind turbines, four substations, a weather monitoring tower, and cable networks.

U.S. Oil & Gas Electrification Market Analysis

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Solar segment is anticipated to grow over USD 7.5 million by 2034. Increasing efforts to reduce carbon emissions and government initiatives supporting electrification networks across onshore fields and refineries will complement the business landscape. Ongoing integration of renewables including solar and wind systems, coupled with enhanced monitoring and remote-control facilities, strengthens the market outlook. The ongoing modernization and expansion projects across oil & gas refineries and platforms further contribute to the industry growth.

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U.S. oil & gas electrification market from offshore platform electrification segment is anticipated to witness a CAGR of over 5% by 2034. Increased emphasis on sustainable energy generation solutions along with favorable government initiatives to transition from conventional fuel sources will complement the business landscape. Flourishing public and private sector investments coupled with ongoing commissioning of projects across the oil & gas sector, and the need to address environmental concerns through renewable energy integration has enhanced the adoption of clean energy sources in offshore platforms.

The refinery application segment is experiencing significant growth due to the integration of solar energy technology for sustainable power operations. The industry is witnessing significant momentum as refineries focus on reducing dependence on traditional fuel sources while implementing technological advancements. Increased deployment of clean power generation technologies along with ongoing refinery development and refurbishment projects complementing the business outlook. Moreover, government regulations promoting zero-emission solutions and new project initiatives are shaping the business dynamics.

U.S. Oil & Gas Electrification Market Share

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Companies operating in the market expand their presence through strategic partnerships and mergers. They invest in research and development to develop new products and increase revenue while maintaining market share. These organizations strengthen their market position by optimizing distribution networks and expanding internationally through strategic alliances and acquisitions.

U.S. Oil & Gas Electrification Market Companies

Major players operating across the industry include:

• ABB
• Aker Solutions
• BP
• Chevron
• Equinor
• Exxon Mobil
• LS Cable
• Nexans
• Prysmian
• Shell
• Siemens
• Southwire
• SLB
• TotalEnergies
• ZTT
  

U.S. Oil & Gas Electrification Industry News

• In November 2024, Prysmian and TechnipFMC signed a collaboration agreement to accelerate the development of floating offshore wind to meet the increasing demand for renewable electricity. The agreement combines the technologies and expertise of both offshore industry companies to deliver a comprehensive water column solution, with the ability to provide to ocean surface from seabed. The collaboration integrates the company’s integration capabilities and system design in dynamic offshore applications with Prysmian's expertise in producing and installing submarine power cable systems.
  
• In September 2024, A significant partnership has formed between ABB and Argent LNG for a new liquefaction facility in Port Fourchon, Louisiana. The project, set to begin operations by 2030, will produce 25 million tons of LNG annually. Located 150 kilometers south of New Orleans, this facility will supply LNG to markets in Japan, Southeast Asia, Europe, South America, the Caribbean, the Middle East, and North Africa. Through a signed Memorandum of Understanding, ABB will provide automation and electrical solutions for the facility, supporting global energy security and LNG's role in energy transition.
  

The U.S. oil & gas electrification market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million” from 2021 to 2034, for the following segments:

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Market, By Technology

• Offshore Wind
• Underground Cables
• Solar
• Other

Market, By Application

• LNG/FLNG
• Offshore Platform Electrification
• Refinery
• Others